General Motors announced that its assembly plant in Spring Hill, Tennessee will produce electric vehicles, becoming the company's third production facility to do so. The Cadillac Lyriq will be the first EV produced at that location.
A total of $2 billion will be invested in Spring Hill to build EVs, including the Lyriq.
The auto giant already has EV producing facilities at Detroit and Orion Township, Michigan plants. GM also announced investments in five other Michigan plants.
The Spring Hill plant will produce traditionally powered Cadillac products as well as EVs.
Tickeron's analysis shows:
GM sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day Moving Average for GM moved above the 200-day moving average on September 18, 2020. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Current price $36.08 is above $35.37 the highest support line found by A.I. Throughout the month of 09/17/20 - 10/19/20, the price experienced a +4% Uptrend. During the week of 10/12/20 - 10/19/20, the stock enjoyed a +4% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 05, 2020. You may want to consider a long position or call options on GM as a result. In 49 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
The Moving Average Convergence Divergence (MACD) for GM just turned positive on October 07, 2020. Looking at past instances where GM's MACD turned positive, the stock continued to rise in 29 of 43 cases over the following month. The odds of a continued upward trend are 67%.
GM moved above its 50-day Moving Average on September 30, 2020 date and that indicates a change from a downward trend to an upward trend.
The 10-day Moving Average for GM crossed bullishly above the 50-day moving average on August 12, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 59%.
Following a +5.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in 206 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 117 of 224 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
GM broke above its upper Bollinger Band on October 08, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 60%. During the last month, the daily ratio of advancing to declining volumes was 1.09 to 1.
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.19) is normal, around the industry mean (-0.45). P/E Ratio (31.75) is within average values for comparable stocks, (207.59). GM's Projected Growth (PEG Ratio) (0.02) is slightly lower than the industry average of (1.40). GM has a moderately high Dividend Yield (4.15) as compared to the industry average of (1.77). P/S Ratio (0.31) is also within normal values, averaging (35635.43).
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. GM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 65 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.